Answer:
The correct answer is option a.
Explanation:
The price is $12.
At this price, the quantity sold is 10 units.
The average total cost is $5.
The total cost will be
= [tex]ATC\ \times\ Quantity[/tex]
= [tex]\$ 5\ \times\ 10\ units[/tex]
= $50
The total revenue will be
= [tex]Price\ \times\ Quantity[/tex]
= [tex]\$ 12\ \times\ 10\ units[/tex]
= $120
The profit will be
= Total revenue - Total cost
= $120 - $50
= $70
